Many traders have a dream of conducting all their transactions perfectly and profitably. On the one hand, this ensures that you will be very careful and strictly execute the trading algorithm. On the other hand, you can wait for such a deal for a long time while doubting whether it is worth or not entering the market now.
Each trader defines one’s own perfect deal differently. For one the perfect deal is when its technical part fully converges with other components. For another, this may be the maximum profit per transaction. So many traders, so many minds. Nevertheless, ideal transactions have common features and secrets of their achievement. To help market players with achieving this task, read these TOP 5 secrets of ideal transaction.
Five Secrets of Successful Transactions
- The transaction should be done according to the trend. It will be a big mistake to hope to overcome the market and move against the trend.
- Configure a stop loss. Ideally, your stop should not exceed 0.2% of the entry point. Look for deals where the stop loss will be minimal. Do not exceed your risks.
- ATR must be 3 to 1 or 4 to 1 to enter the deal. This is an indicator of your risk and profit in this transaction. Before entering a deal, you should always know how much you get and what you risk.
- Strictly follow the algorithm. Strict adherence to the algorithm will provide you with a quick reaction to a trend change, show entry and exit points, help you accurately read the chart, and save you from draining your deposit.
- Keep your minds clear. Almost 90% of loss-making transactions are made by traders precisely because of the psychological state during trading in Forex and not because of ignorance of technical analysis. Even if there is an ideal trend, due to emotional overload and fear, you may simply not detect it. Remember that when trading, your task is to be in a psychological and emotional balance, even if you have a hurricane behind you.
The success of any trader directly depends on the discipline. The share of discipline in successful trading is very big. The formula is very simple: trade in a disciplined way – and you will succeed; otherwise – you lose. If you discipline 9 transactions out of 10, then there can be no talk about success. To ruin the result of the whole trading day, one transaction is enough. Discipline must be present in every transaction because this is a prerequisite of win.